Abstract
This chapter centres on a novel classification technique called NCaRBS (N-state Classification and Ranking Belief Simplex), and the analysis of Moody’s Bank Financial Strength Rating (BFSR). The rudiments of NCaRBS are based around uncertain reasoning, through Dempster-Shafer theory. As such, the analysis is undertaken with the allowed presence of ignorance throughout the necessary operations. One feature of the analysis of US banks on their BFSR, is the impact of missing values in the financial characteristic values describing them. Using NCaRBS, unlike other traditional techniques, there is no need to externally manage their presence. Instead, they are viewed as contributing only ignorance. The comparative results shown on different versions of the US bank data set allows the impact to the presence of missing values to be clearly exposited. The use of the simplex plot method of visualizing data and analysis results furthers the elucidation possible with NCaRBS.
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Beynon, M.J. (2008). An Exposition of NCaRBS: Analysis of US Banks and Moody’s Bank Financial Strength Rating. In: Prasad, B. (eds) Soft Computing Applications in Business. Studies in Fuzziness and Soft Computing, vol 230. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-79005-1_6
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DOI: https://doi.org/10.1007/978-3-540-79005-1_6
Publisher Name: Springer, Berlin, Heidelberg
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